I’m going to share a little Forex “secret” with you right now that I’m certain you’ve never thought about.

Why am I so confident that you’ve never thought about it?… simply because it’s too obvious!

Give me another 60 seconds and I’ll explain…

The unbelievable mass of information out there on Forex is absolutely mind-blowing! Your inbox is filled every day with the next “latest and greatest” system, robot or service that’s going to “make you rich”.

Okay, there are products coming out all the time, some of them good, so not so good. But seeing all these products takes you away from one of the simplest “secrets” in Forex. The secret is this…

There are only 3 trades you can make in trading.

That’s right, count them… One. Two. Three.

Now, before you leave, shaking your head and wondering what rubbish I’m talking about – I’m going to prove it to you. The only three trades you can make are:

#1 – Fading a move: as price is heading in one direction you trade in the opposite hoping to catch it reversing (this is trading AGAINST the trend).

#2 – Breakout: after price has narrowed and ranged for a while you enter a trade when it suddenly “bursts” into life (usually WITH the trend).

#3 – Pullback: you enter a trade as price pulls back when it’s made a significant move (this is WITH the trend).

And that’s really the only trades you can make in Forex trading – or any type of trading. Everything is just a slight variation on these three things. Knowing about the above three trades is important because…

Making money in Forex is not just about big wins – it’s also about keeping your risk minimal (yes, I know, not as interesting as making big fat pips – but if you want to make money you’ve got to pay attention to this!).

Of the above three types of trade one of them carries a far LOWER-RISK than the others. Can you guess which one?… well, it’s #3.

Trading pullbacks is the lowest risk. And you know what that means?… consistently profitable gains for your account.

So, to help you out, you’ll find an extremely effective pip-stealing strategy for you to download below. It’s very clearly explained, it’s based on pullbacks (low risk!) and very easy to understand. Enjoy!

This article, and the free strategy, were written by James Johnson. James is the author of 100 Pips Before Breakfast – a powerful, step-by-step strategy on day-trading Forex. Check out 100 Pips Before Breakfast.